Ujala - The Supreme Whitener

            

Details


Themes: Advertising and Promotion
Period : 1983-2003
Organization : Jyothi Laboratories
Pub Date : 2003
Countries : India
Industry : FMCG

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Case Code : MKTG051
Case Length : 10 Pages
Price: Rs. 300;



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What Lies Ahead

In the early 21st century, Jyothi launched a number of different products in the FMCG category. In 2000, it launched 'Exo,' a dish washing bar and soon extended it to a dish washing scrub. The company entered the mosquito repellent market in 2001, with the brand 'Maxo' coils. It planned to extend this brand to a liquid vaporizer in the future. In the same year, Jyothi entered the incense stick market through the 'Maya' brand. While Exo was made available only in a few southern states, Maxo and Maya were marketed across the country. Maxo managed to gain a 20% share of the market in its category, but the performance of Maya and Exo was reportedly much below Jyothi's expectations.

In line with its diversification plans, Jyothi took over Tata Chemicals' detergent unit in Pithampur, Madhya Pradesh, for about Rs 40 million in 2001. After this, it was rumored that Jyothi intended to take over Tata Chemicals' 'Shudh' brand of detergent. Meanwhile, undeterred by the lackluster performance of its recent launches, Jyothi entered the very competitive bathing soaps segment with Jeeva, an Ayurvedic soap in 2001.12 As with Ujala, the new brands were promoted vigorously. For Jeeva, Jyothi turned to celebrity endorsement for the first time, using Simran, a popular South-Indian movie star.

However, none of the new brands managed to generate as much excitement as Ujala. This prompted analysts to state that while diversification was necessary given the fact that the fabric whitener market seemed to have reached saturation point, the company could not expect to have an easy run. Many analysts felt that the company would not be able to replicate the success of Ujala in any of the new segments it had entered.

When Jyothi entered the fabric whitener segment, it had to contend with only one national-level player. But the new segments it had entered into were already dominated by many strong brands.

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12] Ayurveda is a traditional alternative medical system that was developed in India over 5000 years ago. The system works on the premise that diseases are the result of living out of harmony with the environment and seeks to heal by re-integrating an individual's mind and spirit by tackling the various basic elements that the human body is comprised of. Ayurvedic soaps are made of herbal ingredients and are marketed on health and purity platforms.